Delivery note vs invoice: what is the difference?

Delivery note vs invoice: the key difference

A delivery note identifies the goods dispatched or handed over, usually including item descriptions, quantities, destination and delivery references. An invoice identifies the amount charged or due, with pricing, applicable taxes and payment terms. They may relate to the same order but serve different purposes. Neither document alone necessarily proves that payment has been received.

Side-by-side comparison

These are common business practices, not universal legal definitions. Requirements and timing vary by transaction and jurisdiction.

Worked example: partial delivery of office chairs

A furniture supplier agrees to supply 12 office chairs at $100 each, excluding taxes and delivery charges for simplicity. The order value is $1,200. Today the supplier delivers only 10 chairs, with the remaining two scheduled for later.

Illustrative quantities and amounts in USD — not tax advice.

The delivery note should show that 10 chairs were actually handed over and that 2 remain outstanding if that is useful to the parties. The invoice should follow the agreed billing terms: it might cover the entire $1,200 order, only the delivered $1,000 portion, or another agreed billing milestone. Do not assume the invoice total must equal the delivered quantity in every contract.

Suggested delivery note: “10 of 12 office chairs delivered; 2 chairs pending a later delivery.” If one chair is damaged, note the exception before acknowledgment.

When should a business use both documents?

Both are useful when physical delivery and billing need separate records, particularly for wholesale orders, furniture, equipment, building materials and deliveries made in several trips. A shared purchase-order or invoice reference can help reconcile the documents.

Should a delivery note include prices?

Not necessarily. Many delivery notes focus on item descriptions, quantities and delivery details. Some businesses include prices for operational reasons. An invoice normally contains the commercial charges, discounts, applicable taxes and payment terms.

Who should sign a delivery note?

An authorized sender may sign to confirm dispatch. The recipient generally acknowledges the goods when they arrive, after checking them where practicable. A recipient's signature may confirm receipt, but does not automatically establish that every item was defect-free or that an invoice was paid. Do not pre-fill a recipient's signature as though acknowledgment has already occurred.

Common mistakes to avoid

• Copying ordered quantities: Record what was actually delivered, especially on partial shipments.
• Confusing delivery with payment: A signed delivery note is not a payment receipt.
• Missing references: Include an order, dispatch or invoice reference where useful.
• Ignoring damage or shortages: Record discrepancies at handover when possible.
• Assuming all invoices follow delivery: Advance and milestone billing may be agreed.
• Omitting payment terms: Ensure the invoice clearly states the relevant due date and terms.
• Discarding records: Retain copies needed for reconciliation and disputes.

How to create both documents with BizDoc Maker

1. Open the Delivery Note Generator.
2. Enter the sender, recipient, delivery destination and document reference.
3. Add item descriptions and the quantities actually dispatched or delivered.
4. Review the live preview, then print or save as PDF. Leave receiver acknowledgment for the person receiving the goods.
5. Open the Invoice Generator when the agreed billing stage is reached.
6. Enter seller and customer details, billed items, prices, adjustments, taxes where applicable and payment terms.
7. Check the invoice against the agreement and delivery records, then print or save as PDF.

Frequently asked questions

Is a delivery note the same as an invoice?

No. A delivery note documents goods dispatched or delivered; an invoice documents the amount charged or payable.

Does a signed delivery note prove payment?

No. Payment is normally supported by a receipt, bank confirmation or another appropriate payment record.

Can an invoice be issued before delivery?

Sometimes. Advance billing or milestone invoices may be allowed by the agreement, subject to applicable invoicing and tax rules.

Can I issue a delivery note for a partial shipment?

Yes. Show the quantity actually delivered and, where useful, the quantity still pending.

Do I always need both documents?

Not necessarily. The transaction, customer requirements, internal process and local rules determine which records are needed.

What if the delivered goods are damaged?

Describe the affected items and quantities, keep supporting evidence where practical, and follow the agreed claims or returns process.

Note: Document, tax and acknowledgment requirements vary by country, industry and transaction. This guide provides general business information, not legal or tax advice. Check applicable local rules where necessary.